Requirements Of International Financial Reporting Standards Research Articles

ВІДМІННІСТЬ ВІДОБРАЖЕННЯ НЕМАТЕРІАЛЬНИХ АКТИВІВ У ФІНАНСОВІЙ ЗВІТНОСТІ ЗА ФОРМАМИ МСФЗ ТА НП(С)БО НА ПРИКЛАДІ АГРАРНИХ ФОРМУВАНЬ

Introduction. Over the past ten years, significant changes and improvements have taken place in accounting and auditing, both in legislation and requirements for accounting and auditing. In particular, large enterprises should keep records under International Financial Reporting Standards (IFRS) and ideally reflect their performance in financial statements under IFRS forms. On the Balance Sheet of agricultural formations, one of the main assets is land, but since most enterprises rent it, there is a right to use land plots, which is an intangible asset. It is important for users of financial statements, who are interested in information in the field of land relations, to correctly understand the reflected names of articles and financial indicators in reporting. Problem Statement. Intangible assets are divided into different types and groups, but in the financial statements according to NAS for them there is only one article with the general title “Intangible assets.” In accordance with the requirements of IFRS, an entity has the possibility to divide types or groups of intangible assets into separate items. However, in Ukraine there is a problem of imperfection of financial reporting forms under IFRS, which requires in-depth study and wider disclosure of financial reporting items, including intangible assets. The purpose of the article is to distinguish differences between the reflection of financial indicators on intangible assets in the reporting forms under NAS and IFRS in agricultural formations and outline for users of financial statements advantages and disadvantages. Methods. General scientific methods of cognition and the study of phenomena and processes were used; statistical and economic methods of analysis - when summarizing and presenting information on financial indicators of intangible assets in reporting; comparison - when intangible assets are reflected in the financial statements under NAS and IFRS. Results. The article reflects the stages of formation of IFRS in Ukraine, focuses on the reflection of financial indicators in the NAS and IFRS reporting forms on the example of agricultural formations, their advantages and disadvantages, and characterizes the types of intangible assets. Conclusions. In the process of the research , the opinion was formed that the reflection of intangible assets under IFRS reporting is more detailed and informative than under NAS reporting.

THE CHALLENGES OF IMPLEMENTING ACCOUNTING INFORMATION SYSTEMS IN IFRS AND GAAP : GLOBAL STUDY

This paper provides a thorough analysis of the difficulties that arise when putting accounting information systems (AIS) into practice under the auspices of generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS). The research delves into the worldwide terrain, covering a range of commercial settings and legal structures. Using both qualitative and quantitative research methods, the study looks into important variables that affect how well AIS is adopted and integrated in accordance with GAAP and IFRS requirements. KEYWORDS: Accounting Information Systems (AIS), International Financial Reporting Standards (IFRS), Generally Accepted Accounting Principles (GAAP), Global Study

Harmonization of capital accounting in Azerbaijan commercial enterprises in accordance with IFRS requirements

The topic of the research related to capital accounting in commercial enterprises is relevant, as the harmonization of this process in accordance with the requirements of International Financial Reporting Standards (IFRS) becomes an integral component for attracting investment, increasing the transparency of financial reporting, and maintaining competitiveness in the global market. The purpose of the study is to develop and implement the methodology of capital accounting in the accounting activities of commercial enterprises of the Republic of Azerbaijan. Among the methods used, analytical method, statistical method, functional method, method of system analysis, method of deduction, method of synthesis and method of comparison were applied. The research was aimed at in-depth analysis of the essence of capital accounting in Azerbaijani commercial enterprises in the context of modern conditions of market economy. The main attention was paid to the study of the legal and regulatory framework, peculiarities of the authorized capital of limited and joint stock organizations. Within the framework of the research, the key elements of development of financial accounting of capitals complying with IFRS requirements were identified. In addition, specific examples of synthetic accounting of business transactions for capital formation at commercial enterprises are provided, as well as the rules of their reflection in the financial statements are outlined. Special attention is paid to the fundamentals of new accounting rules developed to meet IFRS requirements. As a result of the study, solutions have been proposed to eliminate problems related to capital accounting in accordance with IFRS requirements in the activities of Azerbaijani commercial enterprises. These solutions are oriented to harmonize accounting practices with international standards, improve transparency of financial statements and increase attractiveness for potential investors. The results can be used for Azerbaijani commercial enterprises, contributing to the improvement of financial transparency, attractiveness for investors and harmonization of accounting practices with global standards

RECOGNITION OF CREDIT LOSS RESERVE FOR NON-BANK FINANCIAL INSTITUTIONS: ISSUES OF METHODOLOGY AND PRACTICE

The article develops methodological recommendations for compliance with International Financial Reporting Standards (IFRS); Regulations on mandatory financial standards and requirements limiting risks on transactions with financial assets of credit unions, approved by the Order of the National Commission for State Regulation of Financial Services Markets dated 19.09.2019 № 1840; Regulations on determining the amount of credit risk by banks of Ukraine for active banking operations, approved Resolution of the National Bank of Ukraine of June 30, 2016 № 351. The requirements of IFRS 9 Financial Instruments (IFRS 9) for determining the amount of change in the fair value of a financial asset related to changes in the credit risk of such an asset are considered. The focus is on the requirements of IFRS, which establish the principle of recognizing the provision for expected credit losses on financial assets. The regulatory requirements for the company to take into account the change in the risk of default since the initial recognition when determining whether the credit risk of a financial instrument has increased significantly. The formula for calculating the reserve for expected credit losses is determined and reflected. Methods of accrual of the provision for credit losses are given. Assets and financial liabilities by quality categories are allocated. Factoring transactions are classified by maturity. The differences between the general and individual assessment of the reserve for expected credit losses are revealed. Some characteristics of credit risk by segmentation of financial instruments are given.

The influence of cultural diversity on the convergence of IFRS: evidence from Nigeria IFRS implementation

This study investigates the influences of companies’ cultural diversity on International Financial Reporting Standards (IFRS) adoption in Nigeria. The diverse response to IFRS adoption is a phenomenon that necessitates further investigation to understand the reasons some companies adopt IFRS while others do not. Previous studies have investigated preparers of financial statements’ adoption of IFRS and there is a dearth of research on the role of cultural difference on IFRS adoption. However, little has been explored to understand the impacts of cultural variables on IFRS adoption. Using a self-administered survey questionnaire and logistic regression, this study identifies that financial statement preparers’ levels of professionalism, transparency, flexibility, secrecy, uniformity and the statutory control dimensions of cultural factors impact IFRS adoption at different magnitudes. The study notes that IFRS adoption can only be successful when accountants develop the relevant technical expertise in IFRS prior to implementation. This includes practical training in IFRS requirements, accounting assets and liabilities valuation, recognition of income or liabilities and disclosure of economic events before and after the reporting period consistent with IFRS 10.

The Effects of Organisational Culture on IFRS Adoption: Evidence from Nigerian’ Companies

This study investigates the underlying factors contributing to the International Financial Reporting Standards (IFRS) adoption in Nigeria. The diversity of responses to IFRS adoption is a phenomenon that requires empirical investigation to understand the reasons why some companies adopt IFRS other do not. Previous studies have investigated preparers of financial statements’ compliance with IFRS. However, there is a dearth of research on the influence of cultural factors on IFRS adoption. Little has heretofore has been done to examine cultural variables as determinants of IFRS adoption. This study applies a self-administered survey instrument to elicit data from four major cities in Nigeria. The analysis involves applied logistic regression to estimate the relationship between the covariates and the companies’ decisions to adopt IFRS. The results indicate companies’ professionalism, transparency, flexibility, secrecy, uniformity and statutory control are significant factors impacting IFRS adoption at different magnitudes. For example, a company that considers IFRS will increase the level of financial statements transparency is more likely to maintain some levels of secrecy. The study identifies that IFRS adoption can only be successful when accountants develop the relevant technical expertise in IFRS requirements prior to the implementation. Consequently, there is a need for more practical training in IFRS accounting valuation, recognition, measurement and disclosure of financial information to users of financial statements. The diversity in responses to IFRS adoption, where some companies adopt and others show resistance to IFRS requirements has been a phenomenon that requires empirical investigation to understand the rationale. Though some studies have investigated companies’ compliance with accounting regulations in Nigeria, there is limited research on factors influencing IFRS adoption. A consequence is that efforts to come up with effective policies to enhance IFRS adoption and obtain compliance status for Nigerian companies are constrained. The objective is to contribute to initiatives aimed at assuring foreign investors of reliability of IFRS financial statements prepared by Nigerian companies.

The Effects of Organisational Culture on IFRS Adoption: Evidence from Nigerian’ Companies

This study investigates the underlying factors contributing to the International Financial Reporting Standards (IFRS) adoption in Nigeria. The diversity of responses to IFRS adoption is a phenomenon that requires empirical investigation to understand the reasons why some companies adopt IFRS other do not. Previous studies have investigated preparers of financial statements’ compliance with IFRS. However, there is a dearth of research on the influence of cultural factors on IFRS adoption. Little has heretofore been done to examine cultural variables as determinants of IFRS adoption. This study applies a self-administered survey instrument to elicit data from four major cities in Nigeria. The analysis involves applied logistic regression to estimate the relationship between the covariates and the companies’ decisions to adopt IFRS. The results indicate companies’ professionalism, transparency, flexibility, secrecy, uniformity and statutory control are significant factors impacting IFRS adoption at different magnitudes. For example, a company that considers IFRS will increase the level of financial statements transparency is more likely to maintain some levels of secrecy. The study identifies that IFRS adoption can only be successful when accountants develop the relevant technical expertise in IFRS requirements prior to the implementation. Consequently, there is a need for more practical training in IFRS accounting valuation, recognition, measurement and disclosure of financial information to users of financial statements.

Corporate Attributes and Corporate Disclosure Level of Listed Companies in Nigeria: A Post-IFRS Adoption Study

This study examines the determinants of corporate disclosure level of listed companies in Nigeria. Specifically, the study investigates the relationship between two structure characteristics and corporate disclosure in Nigerian listed firms. The data used in the study were obtained from the annual reports of 60 companies listed on the Nigerian Stock Exchange from the various sectors of the Nigerian economy. The study covers the post International Financial Reporting Standards (IFRSs) adoption period of three years (2012 – 2014). The structure characteristics (independent variables) are firm size and leverage. Corporate disclosure (dependent variable) was disaggregated into mandatory, voluntary and total disclosure. The data were analysed using both descriptive statistics and the Ordinary Least Squares (OLS) regression. Findings from the descriptive statistics reveal that contrary to prior findings, there is a steady improvement in mandatory disclosure by Nigerian companies since the country’s adoption of IFRSs. However, voluntary disclosure still remains relatively low.Our empirical results show a significant positive association between firm size and mandatory disclosure. The results also reveal a significant negative relationship between leverage and mandatory disclosure. Both leverage and firm size showed a significant positive relationship with voluntary disclosure. The combined effect of leverage and firm size show a significant positive relationship with total disclosure. Based on these findings, we recommend that the Financial Reporting Council of Nigeria and other regulatory agencies should intensify efforts towards enforcement of companies’ compliance with the requirements of IFRSs and other relevant statutory provisions.

The effectiveness of board of directors’ characteristics in mandatory disclosure compliance

PurposeThe purpose of this paper is to investigate the relationship between the characteristics of the board of directors and mandatory disclosure compliance (measured by International Financial Reporting Standards requirements) in firms listed on the Kuwait Stock Exchange (KSE) in 2010.Design/methodology/approachSeveral characteristics are used to assess the effectiveness of the board of directors: number of members, gender diversity, CEO duality, multiple directorships, the proportion of family members on the board and the presence of a member of the ruling family of Kuwait. Mandatory disclosure compliance is measured using a self-constructed, item-based index. A regression model tested the paper’s hypotheses.FindingsAfter controlling for firm-specific characteristics, it was found that board size, gender diversity and multiple directorships were positively correlated with compliance, while CEO duality and the proportion of family members on the board were negatively correlated with compliance.Research limitations/implicationsPotential limitations stem from both the nature of the sample and the dataset. The small sample reflects the size of the KSE and the limited timeframe (a one-year period). Nevertheless, this paper provides some interesting insights. A longitudinal study would provide more comprehensive insights into the relationship between the characteristics of the board of directors and mandatory disclosure compliance over time.Practical implicationsThe findings highlight the effectiveness of board of directors’ characteristics in promoting mandatory accounting compliance. As disclosure is fundamental for the effective functioning of capital markets and sound investments, a direct implication is that the quality of financial reporting can be improved by taking these characteristics into account.Originality/valueThe paper contributes to the literature on the determinants of mandatory accounting compliance. The findings highlight the importance of the board of directors’ role in enhancing transparency and ensuring the quality of financial reporting. The findings will be particularly valuable to those involved in the appointment of directors, who should be aware of the influence of the configuration and characteristics of the board on compliance.

Financial Reporting in South Africa

Financial Reporting in South Africa 2011 is about the application of International Financial Reporting Standards (IFRS) in a South African context. The book is aimed mainly at students and lecturers. Therefore, it contains a large number of detailed examples. In order to maximise the usefulness of the book, each of these examples has a clear focus on the relevant financial reporting issue without unnecessary embellishments, diversions or complications. The examples and their accompanying commentary deal with the recognition, measurement, presentation and disclosure requirements of IFRS, as well as the interaction of these with current South African tax and company law.

Development of Accounting and Financial Reporting For Small and Medium-Sized Businesses in Accordance with International Financial Reporting Standards

This publication considers accounting procedures and financial data reporting by small and medium sizebusinesses in accordance with International Financial Reporting Standards (IFRS). It studies different IFRSinfluence zones in small and medium size businesses. The present study offers the following information: adefinition for “small and medium sized business”; a model of financial accounting and reporting proceduralguidelines for Russian small and medium sized businesses; approaches to creating an accounting system toprepare IFRS-based financial statements; an algorithm to transform small and medium sized businesses’accounting statements in accordance with IFRS requirements.

Off-Balance-Sheet Transactions: The Changing Landscape

The balance sheets of lenders, sponsors, servicers, managers, and investors in structured finance transactions are likely to change as a result of the accounting amendments recently issued by the Financial Accounting Standards Board (FASB). FASB Statement 167 (FAS 167) will affect who consolidates entities known as Variable Interest Entities (VIEs). VIEs are entities in which the equity holders may not be the controlling parties; therefore, a consolidation model is provided to identify the controlling party. The new guidance in FAS 167 redefines the entities that must be evaluated under this model, the consolidation model itself, when the assessment must be performed, and the related financial statement presentation and disclosures. It also increases the degree of judgment that will be required in the process. FAS 166 and FAS 167 also bring the United States closer to convergence with International Financial Reporting Standards (IFRS), which many believe will become the single set of high-quality accounting standards used globally. The elimination of the Qualifying Special-Purpose Entity (QSPE) and the move to a qualitative consolidation model based on control (with regard to both power and benefits) is closely aligned with the requirements of IFRS. And further amendments are possible as the FASB and IASB move forward with the current consolidation project. <b>TOPICS:</b>Other real assets, credit default swaps

No Czech listed companies satisfied the requirements on reporting under IFRS/IAS: Application on financial instruments

Although in the United States derivatives have been traded since around the middle of the nineteenth century, in the Czech Republic a derivative was an unknown term until lately ‐ or rather a term referring to someplace an unknown empire. The situation started to change roughly in the second half of nineties, when as part of macroeconomic shocks and government crisis in 1997 when interest rates increased significantly and the Czech crown devaluated from day to day. At that time companies felt first time ever how heavy impact an unexpected and not counted on change of market conditions may have on them. From 2001 to 2004 another unusual phenomenon occurred which shook the business sector; should a prophet has predicted it at the end of the nineties, he would probably be crazy. The exchange rate of dollar against crown dropped from over 40 CZK/USD to 20 CZK/USD. Companies that made contracts with their customers in dollars but with suppliers in crowns bore a great exchange rate risk and they frequently paid a lot when dollar dropped. At the moment we also have to mention world prices of oil and oil products which rocketed so high that nobody could have expected it several years ago. This paper focuses on the comparison of reporting of the derivatives using International Financial Reporting Standards (IFRS) in comparison with the Czech accounting legislature by the companies listed on the Prague Stock Exchange (PSE). Study draws the attention to check the differences in reporting of derivatives and also compares their qualitative advantages. Results of this study are based on the analysis of annual reports of the companies listed on the PSE. Any of analyzed companies didn’t allow all of the requirements of IFRS on reporting of the financial derivatives.